SINGAPORE - CapitaLand announced on Wednesday (Sept 6) it is expanding its presence in Indonesia by investing S$74.3 million in a 192-unit serviced residence, Ascott Sudirman Jakarta, through its wholly owned unit, The Ascott Ltd.
The acquisition, which is on a turnkey basis, will be carried out through Ascott's global serviced residence fund with Qatar Investment Authority (QIA).
Developed by Ciputra Development Group, the project is Ascott's sixth serviced residence within Jakarta's Golden Triangle and is slated to open in 2018.
Ascott also secured a contract to manage the 230-unit Citadines Canggu Bali that is scheduled to open in 2020.
With the addition of Ascott Sudirman Jakarta, Citadines Canggu Bali, as well as Somerset Sudirman Jakarta in July, Ascott said it has expanded its portfolio in Indonesia by close to 600 units this year.
CapitaLand also said its first integrated development in Indonesia, The Stature Jakarta, is on track for completion by end 2020 at a total development cost of approximately S$220 million.
Located near the heart of Central Jakarta's commercial and lifestyle district, The Stature Jakarta is jointly developed by CapitaLand and local developer Credo Group, through a 50:50 joint venture formed in 2014.
The development spans a total gross floor area of about 55,500 square metres and comprises Stature Residences, an upmarket 29-storey residential tower; Ascott Menteng Jakarta, a 24-storey premium serviced residence tower; Stature Tower, a 20-storey office building; as well as lifestyle retail outlets.
Ronald Tay, CEO of CapitaLand Singapore, who also oversees the Indonesia market, said: "We have identified Indonesia, the largest economy in South-east Asia, as one of the growth markets for CapitaLand. Indonesia's real estate market is underpinned by sound fundamentals such as the country's steady economic growth, rapid urbanisation, increasing domestic consumption, a rising affluent middle class and a young population.
"We will continue to explore opportunities to grow CapitaLand's presence in the country."